A key responsibility that SMSF trustees must adhere to is to keep accurate tax and superannuation records.

The benefits of good record keeping

As a SMSF trustee, the benefits of good record keeping will:

• Make it easier for you to administer and manage your superannuation
• Help when you are getting ready to lodge the SMSF annual return and other SMSF reports, and
• Help ensure the fund’s accounts and audit are completed in a timely manner

Even if you use a superannuation or tax professional to administer your SMSF, each trustee is responsible for good record keeping. This means each trustee could be fined if the appointed auditor tells the ATO that you as trustee have not been keeping proper records.

Minimum record keeping requirements

The ATO requires you to keep the following records for a minimum of five years:

• Accurate and accessible accounting records that explain the transactions and financial position of your SMSF
• An annual operating statement and an annual statement of your SMSF’s financial position
• Documentation showing decisions made about what benefit payment type was paid (pension, lump sum or a combination of both) and the account the payment was paid from
• Copies of all SMSF annual returns lodged
• Copies of transfer balance account reports lodged
• Copies of any other statements you are required to lodge with the ATO or provide to other superannuation funds.

You are also required to keep the following records for a minimum of ten years:

• Minutes of trustee meetings and decisions if matters affecting your fund were discussed, for example, you reviewed the fund’s investment strategy, or the commencement or commutation (in part or in full) of an income stream
• Records of all changes of trustees
• Trustee declarations recognising the obligations and responsibilities for any trustee, or director of a corporate trustee, appointed after 30 June 2007
• Members’ written consent to be appointed as trustees
• Copies of all reports given to members
• Documented decisions about storage of collectables and personal use assets.

Information resources are available

If trustees or directors of a SMSF are unsure about what kind of things they should be recording, they can: 

• Watch the ATO’s short video on record-keeping requirements, or 
• Take an education course to improve their understanding and knowledge of their obligations as an SMSF trustee or director. The ATO has also recently released two new interactive educational courses for SMSF trustees to build their knowledge on setting up (and winding up) an SMSF. In particular, the ‘setting up a SMSF’ course covers all that you need to know about being a SMSF trustee and also explains the record keeping requirements that must be met (which we have touched on in this article). 

As always, we are here to help if you need any further information about your SMSF reporting and record keeping requirements.